Foreign investors extend Sri Lanka rupee bond buying streak to three weeks

Foreign investors bought a net 364 million rupees (about US$1.1 million) of Sri Lankan rupee-denominated bonds in the week ending Friday, October 16, 2026, Central Bank data showed, according to EconomyNext. Hiru News also reported that the buying streak had reached three weeks.

The latest purchases brought net inflows over those three weeks to 5.5 billion rupees, after investors withdrew 16.5 billion rupees over the preceding two weeks. Foreign holdings of government securities reached 202.4 billion rupees. EconomyNext reported that Sri Lanka had recorded net foreign buying in 16 of the previous 18 weeks.

EconomyNext said investors bought less than in the previous two weeks as the rupee faced some downward pressure. The currency had declined 6.4% through October 16. The report said the Central Bank had linked the depreciation to increased oil and vehicle imports amid continuing conflict in the Middle East, while broader uncertainty about global growth was also weighing on investor caution.

Sri Lanka had received about 61.1 billion rupees in net foreign investment in local-currency bonds so far in 2026, following 71.5 billion rupees in net inflows in 2025. The Central Bank raised its key policy rate by 100 basis points in May to contain inflationary pressure. EconomyNext also reported that inflation had risen over the prior six months after fuel prices increased by nearly 50%; fuel prices were raised in the final week of September after cuts in June and August.

Written automatically by AI from the outlets’ own reports, and not reviewed by an editor. It can be wrong — the original report is the authority.